These Are the Top Reasons You Should Load Up on Cassava Sciences Stock
The last time I weighed in on Cassava Sciences (NASDAQ:SAVA) stock, I was pretty bullish.
I said, “Weakness is a great opportunity with this stock. Since pulling back on the Annovis news, the SAVA stock is already back over $100 and could easily run back to $146.16 near-term. All after the company announced positive cognition data with its Simufilam treatment in Alzheimer’s disease.”
That was on Aug. 10, as SAVA stock traded at $102, which is right around where it’s trading today, but it could easily refill its bearish gap around $140 near-term.
All as it progresses with its treatment for Alzheimer’s disease.
Analysts at B. Riley just raised their price target on SAVA to $145 a share from $111. Maxim Group’s Jason McCarthy also has a buy rating on the stock with a price target of $190.
An Alzheimer’s Treatment and SAVA Stock
At the moment, there’s no cure for Alzheimer’s. However, Cassava Sciences is working to wipe it out for good, as it develops simufilam.
According to the company’s investor deck, the treatment can help reduce neurodegeneration and neuroinflammation.
In addition, according to the deck, “Published preclinical data and mechanism of action studies support simufilam’s potential as a disease-modifying drug for AD that also provides symptomatic improvement.”
We also know the company just reported its Alzheimer’s treatment “significantly improved cognition in Alzheimer’s patients, with no safety issues,” as noted in a company press release.
Plus, according to President and CEO Remi Barbier in that same release, “Simufilam improved cognition, biomarkers and behavior.” He went on to laud the drug’s safety profile and hype the fact that it was in pill form.
The treatment also has shown signs of improving brain biomarkers after six months. That’s all positive news, as the company nears Phase 3 trials and perhaps US FDA approval.
Moving Towards Phase 3 Trials
Cassava is moving into Phase 3 studies with patients that have mild to moderate forms of the disease this Fall.
Phase 3 will include two studies with patients that have mild to moderate Alzheimer’s. The first study will test symptomatic improvements, where the company will look for improvements in cognition and daily function. The second study will look at disease-modifying effects of the treatment, where the company wants to see signs of a slower rate of decline in cognition.
If the company can continue to show progress with both, and move forward with US FDA approval, we could be looking at a massive game changer for millions of people. Plus, imagine what could happen with the SAVA stock if the company can help beat the disease.
Here’s the Bottom Line on SAVA Stock
Cassava Sciences could be close to helping millions of people struggling with Alzheimer’s disease. With a Phase 2 success and the potential for even more success in Phase 3, I’d use any signs of weakness as a buying opportunity with this stock.
After gapping from a high of $146.16 to less than $70, SAVA has just begun to find strong support and could refill its bearish gap. Near-term, I want to see the SAVA stock back to $145.16.
Longer-term, I’d like to see it closer to $200 a share, which is possible. Should the company continue to progress well with Phase 3 trials, it could be off to the US FDA next for approval. Once that happens, the sky’s the limit for this stock.
Again, a treatment for Alzheimer’s could be a significant game-changer for millions. It could also send the SAVA stock to the moon. I’d buy it, forget about it, and check back on it in a few months. It’s a goldmine opportunity here.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
